Essential Guide to Benefits for Your Employees
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Essential Guide to Employee Benefits

In today’s competitive marketplace, employee benefits are essential for many reasons. Benefits can help your organization acquire top talent, engage with your employees, and retain your workers. Most benefits packages include basic health coverage and retirement planning. However, a variety of other perks, like free snacks, can make a difference for employees. Additionally, offering the right benefits can help improve employer branding efforts.

What Are Employee Benefits?

Employee benefits are tangible or intangible compensation provided to employees aside from base wages or salaries. Benefits are often reserved for full-time employees. However, it’s increasingly common nowadays to offer benefits to part-time workers as well.

What Are Some Advantages to Offering Employee Benefits?

There are many perks for an organization to offer a comprehensive benefits package. Aside from attracting prime talented employees, you can decrease your worker turnaround and increase employee productivity. You can also improve worker morale and instill a higher commitment to your organization. Overall, employee benefits help contribute to a healthy workforce.

Types of Employee Benefits and Perks

There are plenty of expected (and not-so-common!) benefits offered to employees. However, let’s quickly discuss a few that the law requires.

Legal Benefits

There are  benefits that you are legally required to offer employees. Those include:

  • Medicare and social security contributions
  • Workers’ compensation insurance
  • Unemployment insurance
  • Health insurance (for 50 or more full-time employees)
  • Federal Family and Medical Leave, or FMLA (for 50 or more full-time employees)

Top Employee Benefits

Aside from the required benefits that employers must legally offer, here’s a list of the top benefits employers frequently provide:

  • Health care (to include medical, dental, and vision)
  • Retirement planning
  • Paid training and development
  • Investment opportunities
  • Remote work flexibility
  • Paid Vacation Time Off

What’s the Cost of Employee Benefits?

According to the U.S. Bureau of Labor Statistics, total civilian benefits make up just over 30% of total compensation costs. And that may sound like a reasonably high figure. Remember that the impact on your employees can be worth the investment. You can offer some benefits that won’t break the bank and still make an impression on your employees.

Other benefits that may be more cost-effective include:

  • Free lunches or snacks
  • Reimbursement for travel expenses
  • Company-sponsored discounts (e.g., gym memberships or daycares)
  • Housing or relocation benefits
  • Time off of work for volunteering or training
  • Flexible work hours

Where to Start?

As stated earlier, the law requires you to offer some benefits. In addition, you’ll need to become familiar with which apply to your business. Also, you’ll need to understand what employees expect in the marketplace and what your prospective employees anticipate regarding benefits. After that, once you’ve done your research, decide what benefits package works best for your organization.

Employee benefits offer advantages to both organizations and your workers. Also, they provide opportunities for increased engagement and retention. In other words, you’ll find that they help develop healthy work culture. To that point, make sure to follow the legal guidelines when choosing which benefits to offer your employees. Still, If you need help establishing a compensation package for your employees, call us today! At Belfield Management Solutions, we offer business consulting for the 21st Century. We aim to help take your business to the next level of success!

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